Wisconsin Just Legalized Sports Betting. Now It’s Suing Prediction Markets.

Wisconsin has taken a contradictory turn in its gambling policy, legalizing tribal sports betting while simultaneously cracking down on prediction markets. The Wisconsin Department of Justice (DOJ) announced a lawsuit against five prediction market operators, accusing them of facilitating illegal sports wagering in the state.

The legal action comes just two weeks after Wisconsin approved a tribal sports betting bill, paving the way for regulated sports gambling through tribal casinos. However, Attorney General Josh Kaul (D) argues that prediction markets, which allow users to bet on event outcomes including sports, operate outside the new law’s framework and violate state gambling statutes.

The targeted platforms are not named in the initial announcement, but the DOJ claims they function as unlicensed sportsbooks disguised as forecasting sites. The lawsuit underscores the ongoing debate over how to classify and regulate prediction markets in the evolving U.S. gambling landscape.

As the state moves forward with legal sports betting, this case may set a precedent for how closely related platforms are policed under existing laws.